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TMI Blog2017 (7) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... tries Ltd. (2004 (7) TMI 81 - CALCUTTA High Court) where the amount paid as cess was held as eligible for deduction in computing the composite income under Rule 8 of I.T. Rules. This issue is, therefore, decided in favour of the assessee The fact that the SLP is pending before the Hon'ble Supreme Court against the decision of the Hon'ble Calcutta High Court in respect of AFT Industries Ltd. vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the order dated 12.12.2013 of CIT(A)-IV, Kolkata relating to A.Y.2009-10. 2. Grounds of appeal raised by the revenue reads as follows :- The Ld. CIT(A) erred in law as well as on the facts in holding that Cess on green leaf of ₹ 42,64,792/- is an allowable expenditure ignoring the fact that it is directly attributable to core agriculture activities which is taxable under state agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computed as if it were income derived from business, and forty per cent of such income shall be deemed to be income liable to tax. According to the AO Cess on green leaf was an expenditure which was attributable to the activity of growing of tea and would therefore be not allowable as deduction while computing income from manufacture and sale of tea. The plea of the Assessee was that the entire gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of the AO. On the other hand, the ld.counsel for the assessee relied on the orders of the ld. CIT(A). 6. After hearing the rival submissions and on careful perusal of the materials available on record, keeping in view of the fact that the issue is concluded by the decision of the Hon'ble Jurisdictional High Court in the case of CIT vs AFT Industries Ltd. 270 ITR 167 (Cal) where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the Hon ble Supreme Court in the case of CIT Vs. M/S.Apeejay Tea Co. Ltd. Civil appeal No.3168 of 2006 dated 6.8.2015 wherein the Hon ble Supreme Court has upheld view as was taken in the case of AFT Industries Ltd. (supra). In view of the above, the appeal by the revenue is dismissed. 7. In the result appeal by the Revenue is dismissed. Order pronounced in the Court on 03.02.2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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